(A)   Purpose. Subdivision guarantees are required for the purpose of ensuring that developers properly install all required subdivision improvements in a timely manner, in accordance with approved plats and improvement plans. Subdivision guarantees must be posted in accordance with ILCS Ch. 55, Act 5, § 5-1123; a letter of credit is the preferred method of guarantee.
   (B)   Timing. Subdivision guarantees must be posted before final plat approval.
   (C)   Term.
      (1)   The term of a subdivision guarantee may not exceed two years. A filing fee in the amount of $50 or 0.1% of the total subdivision guarantee, whichever is greater, must be paid by the developer to file the initial subdivision guarantee.
      (2)   The Chief Subdivision Engineer is authorized to allow up to two extensions of the term for no more than one additional year per extension. No extension may be granted until the developer has provided and the Chief Subdivision Engineer has approved a revised total cost of the remaining estimated construction, engineering, surveying and fees for the required public improvements, plus 25% of the original completion guarantee. Extension requests, if granted, must be accompanied by an extension fee equal to:
         (a)   Five percent of the remaining guarantee for the first extension; and
         (b)   Ten percent of the remaining guarantee for the second (final) extension.
   (D)   Form and amount of subdivision guarantee.
      (1)   Subdivision guarantees must be in the form of cash escrow, a letter of credit from a local bank or local savings and loan association or other financial security approved by the county. The subdivision guarantee must be conditioned upon the subdivision of all work necessary to complete the required subdivision improvements within the time period specified at the time of preliminary plat or improvement plan approval.
      (2)   The amount of the subdivision guarantee must equal at least 125% of the estimated cost of all required improvements, including project management costs.
   Subdivision guarantees must include all improvement costs, including right-of-way improvements, storm sewer system, grading of overflow swales through the subdivision, stormwater detention facilities, the cost of protection and repair of existing field tiles, sanitary sewer and/or water main extensions, erosion control, stake out of all lots with iron pipe at all lot corners and the cost of required off-site improvements.
      (3)   The estimated cost of required improvements, including project management costs, must be itemized by improvement type and certified by the applicant’s registered professional engineer. Cost estimates must be based on industry norms within northeastern Illinois.
   (E)   Default.
      (1)   The subdivision guarantee shall be considered in default and may be foreclosed upon by the Chief Subdivision Engineer if the developer:
         (a)   Fails to complete the improvements in accordance with the approved improvement plans and construction specifications;
         (b)   Fails to complete the improvements within the time frame prescribed in this subdivision chapter;
         (c)   Performs the work unsuitably, as determined by the Chief Subdivision Engineer, the Road District Commissioner or other affected agency;
         (d)   Fails to provide a subdivision warranty in an acceptable form to the county and Road District Commissioner; or
         (e)   Fails to provide an extension for the subdivision guarantee as prescribed in this subdivision chapter.
      (2)   When a subdivision guarantee is found to be in default, the Chief Subdivision Engineer, following approval by the Plat Committee, shall give notice by registered mail to the developer and to the issuer of the subdivision guarantee of the County’s intent to foreclose on the subdivision guarantee.
      (3)   If upon receipt of the notice of default, the developer fails to honor the terms and conditions specified in the notice, the Chief Subdivision Engineer shall deliver a demand for payment on the subdivision guarantee. The foreclosed funds shall be delivered to the County Treasurer for deposit into an account designated for the funds.
      (4)   The Chief Subdivision Engineer shall utilize these foreclosed funds to complete and/or maintain the improvements in accordance with the approved improvement plans. All costs, including the county’s administrative expenses associated with causing compliance, shall be deducted from the funds on deposit with the County Treasurer.
      (5)   When compliance with the terms of the subdivision guarantee has been achieved, the Chief Subdivision Engineer, following approval by the Plat Committee, shall authorize the County Treasurer to return to the developer or approved beneficiary of the funds all remaining funds from the subdivision guarantee, if any.
   (F)   Release of subdivision guarantee.
      (1)   Once the conditions of the subdivision guarantee have been completed to the satisfaction of the appropriate agencies and any required subdivision warranty has been provided, the guarantee may be released.
      (2)   All improvements must be completed in accordance with § 154.062(B). No financial guarantee may be released until all required certifications of completion have been provided.
      (3)   At least 60 days before the expected release of a subdivision guarantee, the developer’s engineer must submit:
         (a)   A letter to the Chief Subdivision Engineer stating that they have inspected the subdivision and that all improvements are complete in accordance with the improvements plans;
   This will allow adequate time for inspection of the improvements.
         (b)   A letter from the Road District Commissioner accepting improvements for inclusion into the township system of the streets and drainage facilities;
         (c)   A letter of acceptance by the appropriate utility agency operating the sanitary sewer and water distribution facilities;
         (d)   Two sets of “as-built” drawings of the subdivision improvements, certified by the developer’s engineer; and
         (e)   A letter of acceptance of improvements on other lands by the owner of the property.
      (4)   If improvements are not complete at the time of a requested inspection, the subdivider will be responsible for payment of a re-inspection fee, in accordance with the fee schedule in effect at the time of re-inspection.
   (G)   Partial reduction of subdivision guarantee.
      (1)   Subdivision guarantee may be amended to reflect a reduced amount, provided that:
         (a)   The partial improvements are acknowledged by the Chief Subdivision Engineer, Road District Commissioner and appropriate utility agency; and
         (b)   A revised current estimate of the cost to complete the work is submitted by the developer’s engineer to the Chief Subdivision Engineer and Road District Commissioner.
      (2)   The revised estimate must show all the original estimated items with the appropriate items reduced.
      (3)   Twenty-five percent of the original cost estimate must be added to the revised estimate to determine the amount of the amended subdivision guarantee.
      (4)   If, in the opinion of the Chief Subdivision Engineer, the current amount of the subdivision guarantee is not adequate to cover the cost of the uncompleted work, the subdivision guarantee must be amended to reflect an increased amount.
      (5)   The revised estimate must be accompanied by a letter from the developer’s engineer stating that they have inspected the improvements and that they are complete in accordance with the improvements plans.
      (6)   A reduction of subdivision guarantee does not imply acceptance of those improvements included in that reduction; acceptance of improvements does not occur until all improvements are complete and inspected by Chief Subdivision Engineer and Road District Commissioner and the subdivision guarantee is released as outlined in division (F) above.
(Ord. passed 7-8-1970; Res. 09-167, passed 6-18-2009; Ord. 11-87, passed 3-17-2011)